Operational Update: Sugarloaf Project
6 March 2013
Empyrean Energy PLC
("Empyrean" or the "Company"; Ticker: (EME))
Operational Update: Sugarloaf Project: Onshore Texas, USA
Further to the announcement on 26 February 2013, Marathon Oil ("Marathon") has informed Empyrean that at least two further wells have been added, at this early stage, to the drilling schedule for 2013.
This brings the total number of wells currently expected to be drilled for 2013 to 30 wells.
Marathon has advised that the two additional wells will be drilled into the Eagle Ford Shale Black Oil window within the Sugarloaf AMI. The two additional wells have been included by Marathon to cater for at least one non-operating partner's desire to increase the number of wells to be drilled in the Sugarloaf AMI for 2013. The Company understands that discussions in this regard are ongoing. The 2013 drilling schedule may be subject to further revisions and change depending upon the outcome of discussions and also may depend on commodity prices, in particular gas and natural gas liquids pricing in the USA.
As stated by Marathon, "With the continued strength of oil pricing relative to gas and natural gas liquids, Marathon Oil is shifting more activity from gas condensate wells to oil wells".
Marathon added, "Marathon Oil continues to have high confidence in the Sugarloaf AMI area and looks forward to full development of this area...We are committed to continue the development and pilot testing of infill drilling in 2013...The forecast activity will meet or exceed all obligations to hold leases or continuing drilling obligations in the Sugarloaf AMI. Marathon Oil anticipates no consequences or impacts to ongoing contracts for services with no forecast reduction in overall basin wide Eagle Ford development activity".
The current drilling schedule includes a pilot program to test a number of Austin Chalk wells within the Sugarloaf AMI.
Empyrean CEO, Tom Kelly said, "The rate of acceleration in the pace of development during 2012 was rapid and effective under Marathon's operatorship. At this stage, drilling 30 wells on the Sugarloaf AMI, including a pilot program testing a number of Austin Chalk wells is still a remarkable amount of activity at an average of 2.5 wells per month. Importantly, there will also be an offsetting lower requirement for development funding and perhaps more importantly there is a good chance that success in the Austin Chalk wells may lead to an increase in recoverable reserves, resources and ultimately value."
For further information
Empyrean Energy plc
Tom Kelly
+618 9480 0111
Shore Capital
Anita Ghanekar
Edward Mansfield
+44 (0) 207 408 4090
Jonathan Charles
Lionsgate Communications
E: jcharles@lionsgatecomms.com
M: +44 (0)7791 892509
Notes to Editors:
Empyrean Energy Plc is an AIM listed (Ticker: EME) condensate and gas exploration and production company focused on the Eagle Ford Shale, Texas, USA. Other assets include a 10% working interest in the Riverbend Project, Texas, just north of the prolific Brookeland Field (Austin Chalk) as well as a 48.5% interest in the Eagle Oil Pool Development Project located in the San Joaquin Basin, southern California.
Empyrean's portfolio includes an interest in over 70 producing wells with scaleable growth potential from further development and exploration upside.
This information is provided by RNS
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